THE ECONOMICS OF THE U.S. STATE AND LOCAL ECONOMIC DEVELOPMENT BUSINESS

Marshall J. Horton

Abstract

The Economic Development business in the U.S. appears to be alive and well with competition between states and municipalities for firms to relocate to areas of developmental advantage. The sustainability of the approach, as it is commonly practiced, has been called into question. Alternative approaches, such as a life cycle model of the industry and Jacobs’ local import replacement, may provide some stability for what has become a large, American, industry. Above all, academic economists may want to continue to steer clear of this industry.